“Pay-for-delay agreements involve brand name and generic drug manufacturers entering into agreements that pay the generic drug manufacturer to delay bringing its lower-priced alternative to market. This practice not only denies consumers access to lower-cost treatment options as soon as possible, but also prevents competition. The delay and lack of low-cost options reverberates throughout the health care system – including Medicare and Medicaid – and is especially burdensome for consumers.

“The Court’s decision recognizes that pay for delay arrangements may violate antitrust laws. Making sure prescription drugs are available and affordable for consumers is critical to our nation’s health care system. AARP is hopeful this decision will lead to an end to such agreements and that ultimately courts will find them anticompetitive and illegal, promoting more competition and helping reduce prescription drug costs for programs like Medicare and Medicaid as well as for consumers and other payers of health care. AARP has long advocated for ending these harmful agreements that excessively extend patent monopolies and can result in patients foregoing needed treatment because of the high cost of brand name drugs. These agreements also artificially inflate health care costs across the board; the Federal Trade Commission estimates these agreements cost consumers and taxpayers $3.5 billion per year.”